1314 = "A required privilege is not held by the client." It is the SQL Agent account with the trouble perhaps, and not just the proxy account. Make sure you reset the SQL Server service account by using the Configuration Manager, so that the service account you choose gets added into SQLServer2005SQLAgentUser$<machine_name>. If the current service account for SQL Agent is not in that group, add it to that group manually, or swap the service account to local system, save, then swap it back again to the desired account and type the password (using configuration manager) You may have missed a couple of the user rights (administrators group may not include these privileges) http://msdn.microsoft.com/en-us/library/ms143504(SQL.90).aspx- Log on as a service (SeServiceLogonRight) - Act as part of the operating system (SeTcbPrivilege) (only on Windows 2000)- Log on as a batch job (SeBatchLogonRight)- Replace a process-level token (SeAssignPrimaryTokenPrivilege) - Bypass traverse checking (SeChangeNotifyPrivilege)- Adjust memory quotas for a process (SeIncreaseQuotaPrivilege)